Online education platform Coursera takes over Udemy in a $2.5 billion deal

Online education company Coursera said yesterday that it has agreed to acquire rival Udemy in an all-stock transaction, as consolidation accelerates across a sector facing headwinds from the post-pandemic slowdown and the rise of AI chatbots. The deal values the combined business at $2.5 billion.

Coursera and Udemy are betting that a merged platform will be better positioned to capture growing corporate demand for workforce training, especially in areas such as artificial intelligence, data science, and software development. Employers are increasingly investing in reskilling initiatives as generative AI technologies advance rapidly.

Coursera works closely with universities and institutions to deliver degree programs and professional certificates, and has increasingly shifted its focus toward enterprise clients. Udemy, by contrast, operates a marketplace where independent instructors sell individual courses and subscription-based offerings to both consumers and businesses.

While companies in the sector have promoted AI upskilling as a key growth driver, investors have remained cautious. Shares of online education firms have generally underperformed the broader market, amid concerns about competition, pricing pressure, and uncertainty about returns from AI-focused investments.

Udemy’s stock has declined about 35% so far this year (without counting the post-announcement climb), while Coursera shares have shed more than 80% of their value since the company’s 2021 IPO.

Even with steep declines, Udemy and Coursera have fared better than other online education platforms because they primarily serve adults. On the other hand, many platforms focused on educating school and college students fared much worse, as AI chatbots quickly ate into their market share.